Issue link: https://htpgraphics.uberflip.com/i/116750
Commercialising the Inhibitor SOLUTIONS Commercialising the Inhibitor Key terms for licence agreement n Payment provisions – Lakeland will ideally want an upfront payment to recompense it so far as is possible for the costs which it has already incurred. IPP may be reluctant to agree this and so some sort of compromise may be needed with part being paid upfront and part by reference to certain milestones. Lakeland will also want royalties possibly based on a percentage of the sales revenue of the drug. If sales are being made worldwide it will need to think about currency conversion. It must not forget to have the right to charge VAT where applicable. n Type of licence – if IPP is going to have to make substantial investments Lakeland may have to offer it exclusivity. Lakeland may however limit the licence to the field of breast cancer as this is IPP's area of interest. Lakeland will also want a licence back to permit Brian Hodgson to continue his research. n Territory – as IPP does not have capacity to market the drug worldwide Lakeland may only want to give IPP a licence in specific countries. It could give licences in other territories to the third parties who have shown interest. Alternatively Lakeland may find it easier to deal with one licensee and allow IPP to sub-license third parties. If it does this Lakeland needs to think about what controls it wants over who the sub-licensees are and the terms of the sub-licences. n Improvements – if any arise from Brian Hodgson's further work IPP is not paying for these and so there is no reason for them to be automatically included in the licence. Lakeland may decide on a case by case basis to add them to the licence if it sees fit. An improvement may be particularly valuable and Lakeland may want to be able to charge more for rights to use it. n Trade mark – although IPP came up with the idea for the brand, it would make more sense for the brand and the patents to be owned by the same entity. Lakeland should try and negotiate this as part of the deal. n Prosecution/maintenance of patents/trade marks – Lakeland should ask that IPP is responsible for prosecuting and maintaining the IP (at least in its licensed territory) so that it does not have to bear the costs. 64